Are they hurting Mr.Gibbs?
What a moron.
What a moron.
The people making 250K a year are not spending as much money. The people making 40K a year are not spending as much money. The 84 million people not in the workforce are not spending as much money. The 14,860,000 unemployed are not spending as much money.
There are many reasons. Many are not spending money because my investment income went into the crapper. They don't have as much to spend. Their annual income has decreased. Many are also not spending because of the uncertainty of the economy. Sooner or later, someone is going to have to pay the piper. Our debt will come due.
Gibbs talks about those with 250K incomes. Those people are not as bad off as someone with a 40K income. That is obvious.
The point he neglects is if someone had a job that pays $250K and had investment income paying $50K in 2006, and their income kept pace with inflation. They would have a $270K income and $0 from investments. Their lifestyle changed dramatically. And a net loss of $30K a year in 2006 dollars. If they bought a house at the height of the market in 2006 for 2 1/2 times their salary, $625K and put 20% down, they had a mortgage of $500,000. Say they were in the booming Phoenix Arizona market. As of March 2009, the Phoenix home market dropped 48%. That means their house is now worth $325,000, and they are still paying $2700 a month on his mortgage. Are they hurting Mr.Gibbs? They still owes $467K on a $325K house. Are they hurting Mr. Gibbs? They are now paying more for their health care, and unsure of what Obamacare will do to the health care costs. Are They hurting Mr. Gibbs? Their kids college tuition grew at 7.1% a year.They were paying $20K in 2006, They are paying $26K now. Are they hurting Mr.Gibbs? Are they pulling back?